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Sectoral analysis of foreign direct investment and growth in the developed countries

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  • Vu, Tam Bang
  • Noy, Ilan

Abstract

Empirical studies on foreign direct investment (FDI) and growth in developed countries have yielded conflicting results using cross-country regressions. We use sectoral data for a group of six country members of the OECD. Our paper is the first to identify the sector-specific impact of FDI on growth in the developed countries. Our results show that FDI has positive, or no statistically discernible, effect on economic growth directly and through its interaction with labor. Moreover, we find the effects seem to be very different across countries and economic sectors.

Suggested Citation

  • Vu, Tam Bang & Noy, Ilan, 2009. "Sectoral analysis of foreign direct investment and growth in the developed countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(2), pages 402-413, April.
  • Handle: RePEc:eee:intfin:v:19:y:2009:i:2:p:402-413
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    References listed on IDEAS

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    Cited by:

    1. Ayesha Serfraz, 2018. "Foreign Direct Investment Inflows and Labor Productivity in Pakistan: A Sector-Wise Panel Cointegration Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(1), pages 1-18.
    2. Doytch, Nadia & Narayan, Seema, 2016. "Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption," Energy Economics, Elsevier, vol. 54(C), pages 291-301.
    3. Ben Slimane, Mehdi & Huchet-Bourdon, Marilyne & Zitouna, Habib, 2016. "The role of sectoral FDI in promoting agricultural production and improving food security," International Economics, Elsevier, vol. 145(C), pages 50-65.
    4. Preeti Flora & Gaurav Agrawal, 2015. "A Co-integration and Causality Analysis of Highest FDI Recipient Asian Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 1078-1089, December.
    5. Salebu, Jefry Batara, 2014. "Pengaruh Penanaman Modal Asing Terhadap Pertumbuhan Ekonomi Di Indonesia: Analisis Data Panel Periode 1994-2013
      [The Impact of Foreign Direct Investment on Indonesian Economic Growth: Panel Data an
      ," MPRA Paper 72830, University Library of Munich, Germany.
    6. Mostefa BELMOKADDEM & Yassine Zakaria GHOUALI & Mohammed Seghir GUELLIL & Mohammed Abbes SAHRAOUI, 2014. "Causal Interactions Between Fdi, Electricity Consumption And Economic Growth: Evidence From Dynamic Panel Co-Integration Models," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 3(2), pages 1-30, DECEMBER.

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